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Legislation #: 100986 Introduction Date: 11/18/2010
Type: Ordinance Effective Date: 12/9/2010
Sponsor: COUNCILMEMBER FORD
Title: Authorizing the execution of a Promissory Note between the City and Bank of America, N.A. in an aggregate principal amount not to exceed $10,000,000.00, bearing interest as provided therein; reducing the Contingent Appropriation in the General Fund by $305,564.00; appropriating the amount of $305,564.00 from the Unappropriated Fund Balance in the General Fund; estimating revenue in the amount of $10,161,776.00; reducing revenues in the East Village TIF Fund in the amount of $431,136.00; appropriating debt service, note expense and other payments in the amount of $9,959,301.00 in the East Village TIF Fund; designating requisitioning authority; and recognizing an emergency.

Legislation History
DateMinutesDescription
11/18/2010 Filed by the Clerk's office
11/18/2010 Referred to Finance and Audit Committee
12/8/2010 Advance and Do Pass as a Committee Substitute, Debate
12/9/2010 Passed as Substituted

View Attachments
FileTypeSizeDescription
100986.pdf Authenticated 119K AUTHENTICATED
revised fact sheet.xlsx Advertise Notice 26K revised fact sheet
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=100986 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=100986
Approp Admin Comm Sub #100986 Final (use this).xlsx Other 75K Appropriation and Admin Form
November_Promissory Note_Fact_Sheet Final-(use this).xlsx Fact Sheet 25K Fact Sheet
fiscal notes-Dunn Note bond ordinance.xlsx Fiscal Note 31K fiscal note
November_Promissory Note_Fact_Sheet (TQ ver) v3.xlsx Fact Sheet 25K Fact Sheet
Approp Admin Comm Sub #100986 v1.xlsx Other 75K Appropriation and Admin Form

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 100986

Authorizing the execution of a Promissory Note between the City and Bank of America, N.A. in an aggregate principal amount not to exceed $10,000,000.00, bearing interest as provided therein; reducing the Contingent Appropriation in the General Fund by $305,564.00; appropriating the amount of $305,564.00 from the Unappropriated Fund Balance in the General Fund; estimating revenue in the amount of $10,161,776.00; reducing revenues in the East Village TIF Fund in the amount of $431,136.00; appropriating debt service, note expense and other payments in the amount of $9,959,301.00 in the East Village TIF Fund; designating requisitioning authority; and recognizing an emergency.

WHEREAS, Second Committee Substitute for Ordinance 060943 authorized the execution of the Funding and Acquisition Agreement (the “Agreement”) between the City, the Tax Increment Financing Commission of Kansas City, Missouri (“TIF Commission”), and J.E. Dunn Construction Group, Inc. (“J.E. Dunn”); and

WHEREAS, Ordinance No. 071287 authorized the execution of the first amendment to the Agreement; and

WHEREAS, in connection with the Agreement, on December 4, 2009, the City entered into an annual appropriation promissory note in the principal amount of $10,670,754.00 with J.E. Dunn (the “Original Note”) with twenty-one (21) semi-annual payments beginning June 1, 2010, relating to the East Village TIF Project; and

WHEREAS, Ordinance No 100758 authorized the termination of the Original Note, and the entering of promissory notes with J.E. Dunn in replacement therefore, upon such terms and conditions as described in said Ordinance, and further recognized the pending purchase by Swope Community Builders (“Swope”), its affiliate East Village LLC and/or other affiliate of Swope, of a parcel of land in the Redevelopment Area covered by the East Village TIF Plan for a purchase price of $1,200,000; and

WHEREAS, the Original Note has been replaced with a replacement taxable promissory note in the principal amount of $10,670,754.00 with J.E. Dunn dated December 4, 2009 (the “Replacement Note”); and

WHEREAS, $1,200,000.00 principal amount of the Replacement Note has been paid and retired from proceeds of the sale of land to Swope as described above and from other moneys of the City; and

WHEREAS, the City has determined that there will be a financial advantage to the City if the City enters a taxable floating rate promissory note with Bank of America, N.A. rather than fixed rate promissory notes with J.E. Dunn; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of Finance is authorized to enter into a taxable promissory note with Bank of America, N.A. in the principal amount not to exceed $10,000,000.00, the proceeds of which shall be applied to pay and retire principal of and interest on the Replacement Note, which taxable note shall bear interest at a floating rate as provided therein, provided that such rate shall not exceed the maximum rate of interest permitted by applicable law. The City hereby delegates authority to the Director of Finance to approve the final principal amount and terms of the promissory note.

Section 2. That the following account in the General Fund is hereby reduced by the following amount:

11-1000-179990-B Contingent Appropriation $ 305,564.00

Section 3. That the sum of $305,564.00 is hereby appropriated from the Unappropriated Fund Balance of the General Fund to the following account:

11-1000-129998-X Transfer to East Village TIF Fund $ 305,564.00

Section 4. That revenue in the following account of the East Village TIF Fund is estimated in the following amount:

11-5301-120000-501000 Transfer from General Fund $ 305,564.00

11-5301-120000-590220 Receipt of Note Proceeds 9,856,212.00

TOTAL $10,161,776.00

Section 5. That the following revenue account in the East Village TIF Fund is hereby reduced by the following amount:

 

11-5301-120000-469100 Lease/Sale Proceeds $ 431,136.00

 

Section 6. That the sum of $9,959,301.00 is hereby additionally appropriated from the Unappropriated Fund Balance of the East Village TIF Fund to the following accounts:

 

11-5301-129600-G Debt Service $ 101,089.00

11-5301-129620-B Note Expense 2,000.00

11-5301-129671-B Defeasance of Promissory Note 9,856,212.00

TOTAL $ 9,959,301.00

Section 7. That the Director of Finance is hereby designated as the requisitioning authority for Account Nos. 11-1000-129998, 11-5301-129600, 11-5301-129620 and 11-5301-129671.

Section 8. That the Director of Finance is hereby authorized to close project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

Section 9. That this ordinance is recognized as an emergency measure within the provisions of Section 503(a)(3)(c) of the City Charter in that it appropriates money and shall take effect in accordance with that section.

_____________________________________________

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

____________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

____________________________

Cecilia Abbott

Senior Associate City Attorney